SOURCE: Page 6, line 15; (10)MO040507.6. -->
Page 6, between lines 15 and 16, begin a new paragraph and insert:

SOURCE: IC 4-31-11-0.3; (10)MO040507.6. -->
"SECTION 6. IC 4-31-11-0.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 0.3. As used in this chapter,
"base purse" means an amount equal to seventy percent (70%) of
the equivalent open race purse for a race of the same class and
condition that is:
(1) not a stakes race; and
(2) for a claiming price of at least ten thousand dollars
($10,000).

SOURCE: IC 4-31-11-0.7; (10)MO040507.7. -->
SECTION 7. IC 4-31-11-0.7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE

UPON PASSAGE]: Sec. 0.7. As used in this chapter, "breeder
award" refers to a monetary award paid to the breeder of any
registered Indiana bred or sired horse that:
(1) in the case of a standardbred or quarter horse, satisfies the
requirements of an awards program established by the
commission; or
(2) in the case of a thoroughbred, wins a race at an Indiana
racetrack for a claiming price of at least ten thousand dollars
($10,000).

SOURCE: IC 4-31-11-2.3; (10)MO040507.8. -->
SECTION 8. IC 4-31-11-2.3 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2.3. As used in this chapter, "owner
award" refers to a monetary award paid to the owner of any
registered Indiana bred or sired horse that:
(1) in the case of a standardbred or quarter horse, satisfies the
requirements of an awards program established by the
commission; or
(2) in the case of a thoroughbred, wins a race at an Indiana
racetrack for a claiming price of at least ten thousand dollars
($10,000).

SOURCE: IC 4-31-11-2.7; (10)MO040507.9. -->
SECTION 9. IC 4-31-11-2.7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2.7. As used in this chapter, "stallion owner
award" refers to a monetary award paid to the owner of a
registered Indiana stallion whose progeny:
(1) in the case of a standardbred or quarter horse, satisfies the
requirements of an awards program established the
commission; or
(2) in the case of a thoroughbred, wins a race at an Indiana
racetrack for a claiming price of at least ten thousand dollars
($10,000).

SOURCE: IC 4-31-11-3; (10)MO040507.10. -->
SECTION 10. IC 4-31-11-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. The commission
may shall establish a separate breed development advisory committee
for each breed of horse that participates in racing meetings under this
article.

SOURCE: IC 4-31-11-9; (10)MO040507.11. -->
SECTION 11. IC 4-31-11-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9. (a) Each
development committee may shall make recommendations to the
commission concerning:
(1) stakes races;
(2) futurity races;
(3) races only for horses owned by Indiana residents;
(4) races only for horses sired by stallions standing in Indiana;
(5) races only for horses foaled in Indiana; or
(6) races for any combination of horses described in subdivision

(3), (4), or (5).
Races described in subdivisions (3) through (6) may be for different
distances and may be limited by the age, sex, or gait of the horse.
(b) Each development committee may make recommendations to
the commission concerning:
(1) cooperative arrangements with statewide breed associations;
and
(2) distribution of money available in a development fund in order
to supplement a purse for a race at a county fair or agricultural
exposition in Indiana.

SOURCE: IC 4-31-11-10; (10)MO040507.12. -->
SECTION 12. IC 4-31-11-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10. The
commission may shall establish a separate breed development fund for
each breed of horse that participates in racing meetings under this
article. The development funds shall be administered by the
commission.".

SOURCE: Page 6, line 24; (10)MO040507.6. -->
Page 6, between lines 24 and 25, begin a new paragraph and insert:

SOURCE: IC 4-31-11-15; (10)MO040507.14. -->
"SECTION 14. IC 4-31-11-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15. (a) The
commission shalluse the development funds for the following
purposes: (1) To provide purses and otherfundingfortheactivities awards
for races described in section 9of this chapter as required by:
(A) section 16 of this chapter, in the case of thoroughbred
racing; or
(B) the rules of a program established by the commission,
in the case of standardbred or quarter horse racing.
(2) To fund cooperative arrangements described in section
9(b)(1) of this chapter.
(3) To fund recommendations, if any, made under section
9(b)(2) of this chapter.
(b) The commission may not use money in the development
funds to pay administrative expenses incurred by the commission.

SOURCE: IC 4-31-11-16; (10)MO040507.15. -->
SECTION 15. IC 4-31-11-16 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 16. (a) This section applies
only to money distributed to the breed development fund for
thoroughbreds.
(b) The money must be used as follows:
(1) To provide purses and supplements for races restricted to
Indiana bred or sired horses, or a combination of Indiana
bred or sired horses.
(2) To pay the following awards:
(A) Owner awards.
(B) Breeder awards.
(C) Stallion owner awards.
(c) Money used to provide purses under subsection (b) must
supplement the base purse provided from the horse industry trust
account established under the rules of the commission.
(d) An award paid under subsection (b) is equal to the following
amounts:
(1) Twenty percent (20%) of the total purse of the race for
which the award is made, including any purse supplements, in
the case of an owner award or a breeder award.
(2) Ten percent (10%) of the total purse of the race for which
the award is made, including any purse supplements, in the
case of a stallion owner award.".

SOURCE: IC 4-35-7-12; (10)MO040507.44. -->
"SECTION 44. IC 4-35-7-12, AS AMENDED BY P.L.142-2009,
SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 12. (a) The Indiana horse racing commission
shall enforce the requirements of this section.
(b) Except as provided in subsections subsection (j), and(k), a
licensee shall before the fifteenth day of each month devote to the
gaming integrity fund, horse racing purses, and to horsemen's
associations an amount equal to fifteen percent (15%) of the adjusted
gross receipts of the slot machine wagering from the previous month
at the licensee's racetrack. The Indiana horse racing commission may
not use any of this money for any administrative purpose or other
purpose of the Indiana horse racing commission, and the entire amount
of the money shall be distributed as provided in this section. A licensee
shall pay the first two hundred fifty thousand dollars ($250,000)
distributed under this section in a state fiscal year to the Indiana horse
racing commission for deposit in the gaming integrity fund established
by IC 4-35-8.7-3. After this money has been distributed to the Indiana
horse racing commission, a licensee shall distribute the remaining
money devoted to horse racing purses and to horsemen's associations
under this subsection as follows:
(1) Five-tenths percent (0.5%) shall be transferred to horsemen's
associations for equine promotion or welfare according to the
ratios specified in subsection (e).
(2) Two and five-tenths percent (2.5%) shall be transferred to
horsemen's associations for backside benevolence according to
the ratios specified in subsection (e).
(3) Ninety-seven percent (97%) shall be distributed to promote
horses and horse racing as provided in subsection (d).
(c) A horsemen's association shall expend the amounts distributed
to the horsemen's association under subsection (b)(1) through (b)(2) for
a purpose promoting the equine industry or equine welfare or for a
benevolent purpose that the horsemen's association determines is in the
best interests of horse racing in Indiana for the breed represented by the

horsemen's association. Expenditures under this subsection are subject
to the regulatory requirements of subsection (f).
(d) A licensee shall distribute the amounts described in subsection
(b)(3) as follows:
(1) Forty-six percent (46%) for thoroughbred purposes as follows:
(A) Sixty percent (60%) for the following purposes:
(i) Ninety-seven percent (97%) for thoroughbred purses.
(ii) Two and four-tenths percent (2.4%) to the horsemen's
association representing thoroughbred owners and trainers.
(iii) Six-tenths percent (0.6%) to the horsemen's association
representing thoroughbred owners and breeders.
(B) Forty percent (40%) to the breed development fund
established for thoroughbreds under IC 4-31-11-10 to be used
as required by IC 4-31-11-16.
(2) Forty-six percent (46%) for standardbred purposes as follows:
(A) Fifty percent (50%) for the following purposes:
(i) Ninety-six and five-tenths percent (96.5%) for
standardbred purses.
(ii) Three and five-tenths percent (3.5%) to the horsemen's
association representing standardbred owners and trainers.
(B) Fifty percent (50%) to the breed development fund
established for standardbreds under IC 4-31-11-10.
(3) Eight percent (8%) for quarter horse purposes as follows:
(A) Seventy percent (70%) for the following purposes:
(i) Ninety-five percent (95%) for quarter horse purses.
(ii) Five percent (5%) to the horsemen's association
representing quarter horse owners and trainers.
(B) Thirty percent (30%) to the breed development fund
established for quarter horses under IC 4-31-11-10.
Expenditures under this subsection are subject to the regulatory
requirements of subsection (f).
(e) Money distributed under subsection (b)(1) and (b)(2) shall be
allocated as follows:
(1) Forty-six percent (46%) to the horsemen's association
representing thoroughbred owners and trainers.
(2) Forty-six percent (46%) to the horsemen's association
representing standardbred owners and trainers.
(3) Eight percent (8%) to the horsemen's association representing
quarter horse owners and trainers.
(f) Money distributed under this section may not be expended unless
the expenditure is for a purpose authorized in this section and is either
for a purpose promoting the equine industry or equine welfare or is for
a benevolent purpose that is in the best interests of horse racing in
Indiana or the necessary expenditures for the operations of the
horsemen's association required to implement and fulfill the purposes
of this section. The Indiana horse racing commission may review any

expenditure of money distributed under this section to ensure that the
requirements of this section are satisfied. The Indiana horse racing
commission shall adopt rules concerning the review and oversight of
money distributed under this section and shall adopt rules concerning
the enforcement of this section. The following apply to a horsemen's
association receiving a distribution of money under this section:
(1) The horsemen's association must annually file a report with
the Indiana horse racing commission concerning the use of the
money by the horsemen's association. The report must include
information as required by the commission.
(2) The horsemen's association must register with the Indiana
horse racing commission.
(g) The commission shall provide the Indiana horse racing
commission with the information necessary to enforce this section.
(h) The Indiana horse racing commission shall investigate any
complaint that a licensee has failed to comply with the horse racing
purse requirements set forth in this section. If, after notice and a
hearing, the Indiana horse racing commission finds that a licensee has
failed to comply with the purse requirements set forth in this section,
the Indiana horse racing commission may:
(1) issue a warning to the licensee;
(2) impose a civil penalty that may not exceed one million dollars
($1,000,000); or
(3) suspend a meeting permit issued under IC 4-31-5 to conduct
a pari-mutuel wagering horse racing meeting in Indiana.
(i) A civil penalty collected under this section must be deposited in
the state general fund.
(j) For a state fiscal year beginning after June 30, 2008,andendingbeforeJuly1, 2009, the amount of money dedicated to the purposes
described in subsection (b) for a particular state fiscal year is equal to
the lesser of:
(1) fifteen percent (15%) of the licensee's adjusted gross receipts
for the state fiscal year; or
(2) eighty-five million dollars ($85,000,000).
If fifteen percent (15%) of a licensee's adjusted gross receipts for the
state fiscal year exceeds the amount specified in subdivision (2), the
licensee shall transfer the amount of the excess to the commission for
deposit in the state general fund. The licensee shall adjust the transfers
required under this section in the final month of the state fiscal year to
comply with the requirements of this subsection.(k)ForastatefiscalyearbeginningafterJune30,2009,theamountofmoneydedicatedtothepurposesdescribedinsubsection(b)foraparticularstatefiscalyearisequaltothelesserof:(1)fifteenpercent(15%)ofthelicensee'sadjustedgrossreceiptsforthestatefiscalyear;or(2)theamountdedicatedtothepurposesdescribedinsubsection